A net income of $444m in the third quarter of 2020 helped the reinsurer in narrowing down the net loss for the first nine months of the year
Swiss Re Next building in Zurich, Switzerland. (Credit: Leonardo Finotti/Swiss Re)
Swiss Re has reported a net loss of $691m for the first nine months of 2020 (9M 2020), compared to a net profit of $1.34bn in the same period of 2019.
After the exclusion of Covid-19 claims and reserves of $3bn, pre-tax, the net income for the Swiss reinsurance company during the first nine months is $1.64bn.
For the first six months of the year, Swiss Re reported a net loss of $1.13bn with Covid-19 related claims and reserves being $2.5bn.
The net income in the third quarter of 2020, of $444m, helped the reinsurer in bringing down its nine month-loss.
During the third quarter, the Swiss reinsurer wrapped up the sale of ReAssure sale to Phoenix Group, which resulted in a dividend of $1.5bn to the group.
Swiss Re’s 9M 2020 net premiums earned and fee income were $30.16bn compared to $28.43bn in the same period of last year.
Segment-wise performance for Swiss Re in 9M 2020
In the property and casualty (P&C) reinsurance unit, the net premiums earned in 9M 2020 were $15.51bn compared to $14.21bn in 9M 2019.
The P&C business reported a net loss of $201m in 9M 2020 compared to a net income of $880m in the same period of last year.
Swiss Re’s life and health (L&H) reinsurance unit had net premiums earned and fee income of $10.1bn for the first nine months of 2020, compared to $9.49bn in 9M 2019.
The unit’s net income dropped from to $651m in 9M 2019 to $72m in 9M 2020.
Swiss Re group CEO Christian Mumenthaler said: “The COVID-19 pandemic continues to have a profound impact on communities, families and businesses across the globe, and our sympathies go out to all affected. Since the pandemic started, we have thoroughly tracked and prudently assessed its impact on our Group.
“We built substantial reserves in the first half of this year. Based on developments since then, we believe that our reserving approach remains appropriate and reflective of the ongoing uncertainty surrounding the impact of the pandemic.
“Our businesses are delivering a positive underlying performance, and we are confidently executing on the Group’s priorities in improving market conditions.”